December 16, 2024: In a significant boost to Tamil Nadu’s industrial ecosystem, Taiwan’s Hong Fu Industrial Group, the world’s second-largest manufacturer of non-leather athletic footwear, officially marked its entry into India by laying the foundation stone for a ₹1,500-crore ( USD180 million approx.) footwear manufacturing facility at the SIPCOT Industrial Park in Panapakkam, Ranipet district.
The groundbreaking ceremony was presided over by Tamil Nadu Chief Minister M.K. Stalin, reaffirming the state’s position as a global manufacturing hub. The facility, set to begin operations by January 2026, is projected to create employment for 25,000 individuals, with 85% of the workforce being rural women.
Strategic Vision for Tamil Nadu
Speaking at the event, Chief Minister M.K. Stalin emphasized the state’s commitment to fostering industrial growth. “The Hong Fu project aligns with Tamil Nadu’s mission to become a $1 trillion economy by 2030,” he stated, highlighting the state’s proactive measures in attracting global investments across sectors.
The Chief Minister’s efforts, including international visits to the UAE, Japan, Singapore, Spain, and the US, have positioned Tamil Nadu as a preferred destination for global manufacturing.
R. Selvam, Executive Director of the Council for Leather Exports, lauded the initiative, stating, “This project is a testament to the confidence global brands and manufacturers have in India’s Make-in-India initiative and the immense growth potential of the footwear sector.”
World-Class Footwear Production Hub
Hong Fu, which produces footwear for global giants such as Nike, Adidas, Puma, Reebok, Converse, Vans, and Under Armour, will establish a state-of-the-art plant in Panapakkam, nearly 85 km from Chennai. With an annual production of 200 million pairs of shoes and a revenue of $3 billion, the company’s entry into India is expected to bolster the country’s growing manufacturing sector.
“India’s rapid economic development and growing global influence made it a natural choice for Hong Fu’s latest investment,” said T.Y. Chang, Chairman of Hong Fu Industrial Group. Jacky Chang, Director and CEO of the group, expressed optimism about the project’s potential and extended gratitude to the Tamil Nadu government for their unwavering support.
Collaborative Efforts and Investment Milestones
The project was facilitated by Aqeel Panaruna, Joint Venture Partner and stakeholder in the venture. “This facility represents more than just manufacturing. It symbolizes job creation, community empowerment, and inclusive development,” Panaruna remarked.
Hong Fu signed two Memorandums of Understanding (MoUs) with the Tamil Nadu government—an initial ₹1,000-crore agreement in April 2022, followed by an additional ₹500-crore investment in January 2024—culminating in the ₹1,500-crore Panapakkam project.
A Hub for Sustainability and Growth
The Panapakkam project is not only a significant milestone for the footwear industry but also a testament to Tamil Nadu’s commitment to job creation, economic growth, and sustainable development. With the SIPCOT Industrial Park also housing Tata Motors-JLR’s advanced car manufacturing facility, the region is poised to become a critical hub for industrial innovation.
This landmark investment by Hong Fu reaffirms India’s growing prominence in the global manufacturing landscape while paving the way for Tamil Nadu to lead as a pioneer in the footwear sector.
